What Documents Must A Business Retain?

During their operations, many businesses focus primarily on revenue growth and market expansion, while not giving sufficient attention to the proper retention of legal documentation. However, when facing tax inspections, labor audits, or arising disputes, missing or incomplete records may result in administrative penalties, tax reassessments and back payments, or even place the company at a disadvantage in dispute resolution.

Therefore, establishing a systematic, comprehensive, and legally compliant document retention system is no longer optional—it is a mandatory requirement for all businesses, particularly as Vietnam’s economy enters a phase of robust growth and deeper global integration.

Legal Basis

• Enterprise Law 2020: General provisions on types of documents businesses must retain.
• Accounting Law 2015: Detailed regulations on retention periods and locations for accounting documents.
• Archive Law 2024: Provides general principles for document archival operations.
• Other specialized legal documents: Including Construction Law, Securities Law, Decrees, and guiding Circulars.

Importance

Legal evidence in disputes: Documents such as contracts, meeting minutes, transaction emails, when carefully retained, help businesses protect their legitimate interests and minimize damages.

Serving inspection and audit work of state agencies: Businesses must face regular or unscheduled inspections from tax authorities, social insurance agencies, market management agencies, etc. Prompt and complete document presentation demonstrates transparency and minimizes risks of administrative penalties.

Building credibility and professionalism with partners and investors: This establishes strong trust for investors when considering investments or deciding to sign important contracts.

Storage Location

Businesses must retain all documents, files, and materials at their headquarters or other locations as specified in the Internal Regulations (such as document warehouses, archival centers, etc.).

Retention Period

Understood as during the business operation period. Specifically, for tax accounting documents, retention shall comply with the Accounting Law regulations.

Consequences of Non-Compliance Retention

• Administrative penalties (fines from VND 30,000,000 to VND 50,000,000 under Decree 122/2021/NĐ-CP)
• Difficulties in auditing and tax settlement
• Insufficient evidence in case of disputes
• Risk of data loss affecting business operations

Solutions

• Classify documents by clear legal categories
• Retain both paper and electronic copies simultaneously
• Designate personnel responsible for document management

Checklist Important Legal Documents Businesses Must Retain

Maintaining complete and well-organized legal, tax, accounting, and labor records is not only a matter of regulatory compliance but also a crucial safeguard against inspections, penalties, and potential disputes. In an increasingly competitive and integrated economy, establishing a systematic and compliant document retention system is a fundamental requirement for sustainable and secure business growth.